Former Maine Today Media CEO Richard L. Connor gave himself unauthorized salary increases and used company funds to pay for personal expenses, including vacation rentals in Camden and a new vehicle.

In a letter to MTM employees, Publisher Lisa DeSisto says the company's employee theft policy through Travelers Casualty & Surety Co. covered the losses, totaling $537,988.68, with the exception of a $50,000 deductible. The payment was made in December, the Portland Press Herald reports.

In an interview with the paper, Connor claims that the expenses were legitimate. "They're wrong and they're lying," the paper quotes him as saying.

In her letter, DeSisto said there's a "possibility of further legal action" in the case. Meanwhile, Connor's lawyer, Peter Bennett, says his client is considering "taking action," though he doesn't specify what that action might be.